The Nevada Gaming Control Board has reached a formal agreement with prediction market operator Kalshi requiring it to complete a third-party geofencing solution by Aug. 12 or face a penalty of $120,000 per day until it does, following repeated documented failures to comply with a court-ordered prohibition on its Nevada operations.
The First Judicial District Court entered a preliminary injunction against Kalshi on May 18, barring it from offering or facilitating sports-, election-, and entertainment-related contracts in Nevada. Despite that order, Board investigators were repeatedly able to enter into the prohibited contracts on Kalshi’s platform, prompting the Board to move for a contempt finding. That contempt hearing, which had been scheduled for Wednesday, has now been vacated in light of the agreement.
What Kalshi Admitted and What It Must Now Do
Under the agreement, filed with the First Judicial District Court on Thursday, Kalshi admitted that Board investigators entered into sports-, election-, and entertainment-related contracts from within Nevada in violation of the court order. It has detailed its process and timeline for full compliance and agreed to the $120,000-per-day penalty if it fails to meet the Aug. 12 deadline.
Board Chair Mike Dreitzer said Kalshi has agreed to immediately implement a robust, multi-source geofencing solution supplied by a third-party commercial provider, and that implementation has already begun. Kalshi will also provide the Board with periodic progress updates ahead of the deadline.
“This agreement will ensure that Kalshi fully complies with Nevada law moving forward or it will face stiff penalties,” Dreitzer said. “We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”
The Stakes Behind the Settlement
The Board’s contempt filing laid out the scale of what it argued was ongoing harm. According to the filing, Kalshi was taking in hundreds of millions of dollars in wagers on events including the NBA Finals, the Stanley Cup Finals, and the FIFA World Cup while operating without the geofencing controls that licensed Nevada sportsbooks already apply. The filing characterized this as causing “severe and ongoing harm to Nevada, its finances, and its citizens” and argued that licensed competitors were being undercut by an operator unwilling to follow the same rules.
Kalshi has maintained throughout the dispute that it falls under the jurisdiction of the Commodity Futures Trading Commission and is not subject to state gaming regulation, a position the CFTC has backed. The Board has rejected that argument and has pursued enforcement through the state courts accordingly.
Nevada has now successfully restricted all unlicensed prediction markets that had been known to be operating in the state. The Kalshi agreement represents the final and most contested piece of that campaign, given Kalshi’s ongoing federal preemption argument. The contempt proceeding that preceded this deal had been the Board’s most aggressive enforcement step yet.
around the same compliance gap that triggered the Nevada contempt motion.
Renata Kovacs has spent the better part of a decade following the regulatory shifts and licensing battles that define how gambling markets open, close, and evolve across Europe and beyond. She came up through the legal and compliance side of the industry before shifting her focus to journalism and analysis, giving her a perspective that sits closer to the operator room than the press box. Her coverage tends to cut through the noise and get straight to what a regulatory change actually means for the businesses and players involved.